Motel 6 Franchise Information
Motel 6 is a franchise for economy lodging. It was founded in 1962 and started franchising in 1994. It was founded by William Becker and Paul Greene who were building contractors.
The first Motel 6 was opened in Santa Barbara, California. Their name came from charging only $6 per night when they started out. The $6 was just enough to cover their building costs, janitorial supplies, and land leases. Becker and Greene were experts in building low cost housing developments.
This is what gave them the idea to find a way to provide consumers with an alternative to expensive major hotels. In the 1960’s, the hotels were increasing in prices as they became more and more upscale. They spent two years trying to find ways on making their chain as less expensive as possible. They marketed it as a “no-frills” lodging that offered coin-operated black and white television instead of the colored ones in others. They took a small share from traditional hotels until in 1966 when they expanded to 26 locations. After then, they were taking 85% of the shares. They then sold their chain in 1968 to an investment group. The rates increased as they added more and more services to it such as free colored televisions in rooms. In 1985, it was sold to Kohlberg Kravis Roberts who began the advertising campaign that later on became legendary: “We’ll leave the light on for you”.
Even if their rates have risen, they give the assurance that they will always have the lowest price nationwide. In 1990, they were bought by Accor which is a French based company which also purchased Regal 8. To expand even more, they started franchising in 1994. It was also then when they started renovating bedrooms and sold locations that weren’t performing well. Some of its competitors include Econo Lodge, Budget Host, and Super 8 Hotels. They now have 359 locations in the United States, 12 in Canada, and 632 locations that are company owned.
What are the facilities and amenities available at a Motel 6 location?
Their Standard Amenities includes free morning coffee, free local calls, kids stay free, free expanded cable, accessible rooms, and pets allowed. These may vary depending on location. Additional amenities available in some locations are coin laundry, outdoor pool, and WiFi.
Cost and requirements on running a Motel 6 franchise
You need to have a net worth of $1,500,000 and a total liquid asset of at least $300,000. Expect to be investing about $2,900,000 to $3,300,000. The cost of a Motel 6 franchise fee is $25,000 with an on-going royalty fee of 4%. This is for a renewable 10 to 15 year term agreement. You will need about two to 10 employees to run one location. They allow multi-unit ownership and absentee ownership.
What is included in the franchise package?
There will be one week training at the location and an annual convention. You will be receiving newsletters, access to the internet, and access to purchasing cooperatives. Expect to be attending meetings and receiving occasional field evaluations. For marketing support, there will be ad slicks and national media.
Motel 6 Contact Details
You may reach them at:
Address: 4001 International Parkway, Carrollton, Texas 75007
Phone: (888) 842-2942 or (972) 360-9000